World's outsourcing surge above $300 Billion
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World's outsourcing surge above $300 Billion

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World's outsourcing surge above $300 Billion
Bangalore: The doldrums of the economy could not have a severe impact on the outsourcing market, which surged above $300 billion to touch $373 billion. A report by Canada-based research firm XMG Global reveals that global outsourcing market is growing by 14.4 percent this year. India is the top revenue generator in the global outsourcing market with revenue worth $48 billion.

According to Vincent Altez, Senior Analyst at XMG, India will account for 44.8 percent of the global market, while China will hold 25.9 percent. China seconds the list and generated revenue worth $28 billion. XMG named the Philippines as the third-best performing destination, growing at an estimated 21.7 percent to register $7.3 billion in revenues by year-end. India's market share is expected to remain similar due to accounting adjustments following Satyam's financial scandal and demand moving to other offshore countries.

Altez says that global market's overall growth will slide from last year's 19 percent but the 14.4 percent growth is seen as positive due to recession. According to XMG, several factors will impact the industry's market value and "dynamics of global sourcing" in 2010. These factors include the economic recovery of Europe and the United States, which will create business process outsourcing (BPO) demand over IT services, as well as the continuing agility and commitment of governments in China and Vietnam to attract foreign investors and improve infrastructures.

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Reader's comments(7)
1: .a
Posted by:partho - 01 Oct, 2009
2: Regardless of argument and narcissism, it is pathetic to see jobs leave the US for India when the talent applied for consulting jobs is sub-par. There is a whole issue surrounding the 30% onshore and 70% offshore rule as price is not the only competitive advantage.
Posted by:Samuel Adams - 30 Sep, 2009
3:
Inida may never be up to par but it is important to look back where we came from. I left India when manufacturing was scarce, 80% of Indians were poor and the nation depended on foreign aid. My home state then boasted 60% literacy which is now close to 100%.

After more than doubling the population, it is a miracle that India still produces enough to eat. Enduring 800 years of "mid eastern" rule and 200 years of western rule, Indians have done well in keeping their cool and then making great progress in the last 10 years. The changes to come will be exponential. I am sure. It is well deserved.
Das Replied to: Samuel Adams - 30 Sep, 2009
4:
Well US has a lot more positives than India but still US jobs are coming to India. And during recession it is again proved that India is a far better survivor than the US. US is undoubtedly the leader but India and India's economy has a strength of character which makes it a better survivor than US. This stems from the rich cultural heritage and innate tolerance that each individual from India possess irrespective whether they realize it or not. The day that US imbibes this quality of tolerance, US would be invincible in all format. The fragility of US economy would disappear.
Rup Replied to: Samuel Adams - 30 Sep, 2009
5:
4Societies tend to use less talented people if the price is right. Servants and slaves were never that good but people used them.
rakesh Replied to: Rup - 30 Sep, 2009
6:
Societies tend to use less talented people if the price is right. Servants and slaves were never that good but people used them.

We have come a long way but a certain amount of subserviance is easy to assign outside a culture. The feeling of remorse is also projected to those we use. That is my observation
Das Replied to: Rup - 30 Sep, 2009
7: That is a good growth despite the slowdown..
Posted by:Hari - 30 Sep, 2009